A company has budgeted direct materials purchases of $320000 in July and $570000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted: Wages Expense Purchase of office equipment Selling and Administrative Expenses Depreciation Expense $230000 73000 54000 44000 The budgeted cash disbursements for August are $896000 $852000 $798000 $495000 Sheridan Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine New Machine $380000 $760000 114000 10 years 10 years $304000 $228000 If the old machine is replaced, it can be sold for $30400, Which of the following amounts is a sunk cost? $228000 $266000 $760000 $304000